A Bill Regular Session, 2005 HOUSE BILL 1137
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1 0 Stricken language would be deleted from and underlined language would be added to the law as it existed prior to this session of the General Assembly. Act of the Regular Session State of Arkansas th General Assembly As Engrossed: H//0 A Bill Regular Session, 0 HOUSE BILL By: Representative Verkamp For An Act To Be Entitled AN ACT TO AMEND ARKANSAS CODE TITLE, CHAPTER, SUBCHAPTER TO ADD A SECTION TO CREATE A BENEFICIARY DEED AS A NEW FORM OF CONVEYANCE OF TITLE IN REAL PROPERTY; TO REQUIRE THAT A BENEFICIARY DEED BE REVOKED BY A PERSON SEEKING MEDICAL ASSISTANCE FOR LONG-TERM CARE COSTS; AND FOR OTHER PURPOSES. Subtitle TO CREATE A BENEFICIARY DEED AS A NEW FORM OF CONVEYANCE OF TITLE IN REAL PROPERTY AND TO REQUIRE THAT A BENEFICIARY DEED BE REVOKED BY A PERSON SEEKING MEDICAL ASSISTANCE FOR LONG-TERM CARE COSTS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: SECTION. Arkansas Code Title, Chapter, Subchapter is amended to add an additional section to read as follows: --0. Beneficiary deeds Terms Recording required. (a)()(a) A beneficiary deed is a deed that conveys an interest in real property, including any debt secured by a lien on real property, to a grantee designated by the owner and that expressly states that the deed is not to take effect until the death of the owner. (B)(i) A beneficiary deed transfers the interest to the *BBC00* :00 BBC00
2 HB 0 designated grantee beneficiary effective upon the death of the owner, subject to: (a) All conveyances, assignments, contracts, mortgages, deeds of trust, liens, security pledges, oil, gas, or mineral leases, and other encumbrances made by the owner or to which the real property was subject at the time of the owner's death, whether or not the conveyance or encumbrance was created before or after the execution of the beneficiary deed; and (b) A claim for the amount of federal or state benefits that could have been recovered by the Department of Human Services from the estate of the grantor under -- but for the transfer under the beneficiary deed. (ii) No legal or equitable interest shall vest in the grantee until the death of the owner prior to revocation of the beneficiary deed. ()(A) The owner may designate multiple grantees under a beneficiary deed. (B) Multiple grantees may be joint tenants with right of survivorship, tenants in common, holders of a tenancy by the entirety, or any other tenancy that is otherwise valid under the laws of this state. ()(A) The owner may designate a successor grantee beneficiary under a beneficiary deed. (B) The condition upon which the interest of the successor grantee vests shall be included in the beneficiary deed. (b)() If real property is owned as a tenancy by the entirety or as a joint tenancy with the right of survivorship, a beneficiary deed that conveys an interest in the real property to a grantee designated by all of the then surviving owners and that expressly states the deed is not to take effect until the death of the last surviving owner transfers the interest to the designated grantee beneficiary effective upon the death of the last surviving owner. ()(A) If a beneficiary deed is executed by fewer than all of the owners of real property owned as a tenancy by the entirety or as joint tenants with right of survivorship, the beneficiary deed is valid if the last surviving owner is one of the persons who executes the beneficiary deed. (B) If the last surviving owner did not execute the :00 BBC00
3 HB 0 beneficiary deed, the deed is invalid. (c)() A beneficiary deed is valid only if the deed is executed before the death of the owner or the last surviving owner and is recorded before the death of the owner as provided by law in the office of the county recorder of the county in which the property is located. () A beneficiary deed may be used to transfer an interest in real property to a trust estate even if the trust is revocable. (d)() A beneficiary deed may be revoked at any time by the owner or, if there is more than one () owner, by any of the owners who executed the beneficiary deed. () To be effective, the revocation must be: (A) Executed before the death of the owner who executes the revocation; and (B) Recorded in the office of the county recorder of the county in which the real property is located before the death of the owner as provided by law. () If the revocation is not executed by all the owners, the revocation is not effective unless executed by the last surviving owner and recorded before the death of the last surviving owner. () A beneficiary deed that complies with this section may not be revoked, altered, or amended by the provisions of the owner s will. (e) If an owner executes more than one () beneficiary deed concerning the same real property, the recorded beneficiary deed that is last signed before the owner's death is the effective beneficiary deed. (f) Any third party owing an obligation to the owner of an interest which is made subject to a beneficiary deed may require any person claiming to be entitled to any part of such interest as grantee to present reasonable evidence that the owner who executed the beneficiary deed is deceased and that such owner did not execute and record a revocation of such beneficiary deed prior to the owner s death. (g)() This section does not prohibit other methods of conveying property that are permitted by law and that have the effect of postponing enjoyment of an interest in real property until the death of the owner. () This section does not invalidate any deed otherwise effective by law to convey title to the interests and estates provided in the deed that is not recorded until after the death of the owner :00 BBC00
4 HB 0 () In the event of a bankruptcy or divorce, a beneficiary deed shall be treated as a revocable trust. (h) A beneficiary deed is sufficient if it complies with other applicable laws and if it is in substantially the following form: "Beneficiary Deed CAUTION: THIS DEED MUST BE RECORDED PRIOR TO THE DEATH OF THE GRANTOR IN ORDER TO BE EFFECTIVE. I (we) hereby convey to (grantee) effective on my (our) death the following described real property: (Legal description) (Signature of grantor(s)) (acknowledgment)." (i) The instrument of revocation shall be sufficient if it complies with other applicable laws and is in substantially the following form: "Revocation of Beneficiary Deed CAUTION: THIS REVOCATION MUST BE RECORDED PRIOR TO THE DEATH OF THE GRANTOR IN ORDER TO BE EFFECTIVE. The undersigned hereby revokes the beneficiary deed recorded on (date), in docket or book at page, or instrument number, records of County, Arkansas. Dated: Signature (acknowledgment)." /s/ Verkamp APPROVED: 0// :00 BBC00
5 HB :00 BBC00
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